SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2022

Summary of Financial Information by Segment

The following table includes the reconciliation of Adjusted EBIT for Industrial Activities to net income, the most comparable U.S. GAAP financial measure, for the three and nine months ended September 30, 2022 and 2021.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)				(in millions)
Agriculture	$	666	$	415	$	1,755	$	1,396
Construction	24		21		90		70
Unallocated items, eliminations and other	(20)		(16)		(92)		(81)
Total Adjusted EBIT of Industrial Activities	$	670	$	420	$	1,753	$	1,385
Financial Services Net Income	86		96		263		259
Financial Services Income Taxes	32		31		106		83
Interest expense of Industrial Activities, net of interest income and eliminations	(27)		(21)		(97)		(92)
Foreign exchange gains (losses), net of Industrial Activities	(14)		21		(14)		6
Finance and non-service component of Pension and other post-employment benefit cost of Industrial Activities(1)	35		33		112		102
Restructuring expense of Industrial Activities	(11)		(15)		(19)		(21)
Other discrete items of Industrial Activities(2)	(20)		(26)		(78)		(38)
Income (loss) before taxes	$	751	$	539	$	2,026	$	1,684
Income tax (expense) benefit	(192)		(79)		(579)		(347)
Net income (loss) of discontinued operations	—		(131)		—		116
Net income (loss)	$	559	$	329	$	1,447	$	1,453

(1) This item includes a pre-tax gain of $30 million and $90 million in the three and nine months ended September 30, 2022 and 2021, respectively, as a result of the amortization over approximately 4.5 years of the $527 million positive impact from the 2018 modification of a healthcare plan in the U.S. and a pre-tax gain of $6 million and $18 million in the three and nine months ended September 30, 2022, respectively, as a result of the amortization over 4 years of the $101 million positive impact from 2021 modifications of a healthcare plan in the U.S.

(2) In the three and nine months ended September 30, 2022, this item included $7 million and $13 million of separation costs incurred in connection with our spin-off of the Iveco Group Business and $14 million and $22 million of loss from the activity of the two Raven businesses held for sale, including the loss on the sale of the Engineered Films and Aerostar Divisions. In the nine month ended September 30, 2022, this item also included $43 million of asset write-downs. In the three and nine months ended September 30, 2021, this item includes $24 million and $32 million of separation costs incurred in connection with our spin-off of the Iveco Group Business.